Can an arbitrator modify any lawful term of the Aira Fitness franchise agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Any unappealed decision of the arbitrator(s) will be final and binding on all parties to the dispute; however, the arbitrator(s) shall have no authority to: (i) stay the effectiveness of any pending termination of this Agreement; (ii) assess punitive or exemplary damages; (iii) certify a class or consolidate an action, or (iv) make any award which extends, modifies or suspends any lawful term of this Agreement or any reasonable standard of business performance that we set.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, an arbitrator does not have the authority to modify any lawful term of the franchise agreement. Specifically, the document states that the arbitrator cannot make any award which extends, modifies, or suspends any lawful term of the agreement or any reasonable standard of business performance that Aira Fitness sets.
This limitation on the arbitrator's power is significant for prospective franchisees. It means that the arbitrator is bound to uphold the original terms of the franchise agreement as written. The arbitrator's role is to interpret and apply the existing agreement, not to rewrite or change it. This protects both the franchisee and Aira Fitness from having the agreement unilaterally altered through arbitration.
This provision ensures that the contractual obligations and standards of performance remain consistent and predictable throughout the term of the franchise agreement. Franchisees can rely on the fact that the arbitrator cannot impose new or different terms that could potentially impact their business operations or financial obligations. This promotes stability and fairness in the franchise relationship, as disputes are resolved based on the original agreement between the parties.